RSU withholding, reporting and other tasks are handled for you with expert support.
Boost engagement and reward staff
Attract international talent and improve retention by rewarding staff with restricted stock units (RSUs) through Remote.
Our team of experts assist with withholding, reporting and navigating special tax regimes (such as Section 431 Elections in the UK). We are the only global HR provider to offer comprehensive RSU support (not just “virtual shares”). Even better: Remote EOR customers get RSU support at no additional cost.
High-calibre employees expect equity compensation. Remote helps you reward staff with RSUs in full compliance, wherever your team is based.
Do not allow anyone on your team to feel like a “second-class” employee because of where they live. By partnering with Remote, you can ensure equitable total rewards and a consistent employee experience across borders.
It is important to grasp how restricted stock units differ from stock options, the advantages and disadvantages of each, and when a move from stock options to RSUs could be appropriate for your business.
Stock options give the right to buy company shares at a set price, whereas restricted stock units (RSUs) confer direct ownership in the company and are granted to employees at no cost.
As firms mature, their equity compensation approaches should evolve. For later-stage companies with a steadier market presence, moving from stock options to RSUs can be sensible, since RSUs tend to be less volatile than stock options, which are typically chosen by smaller startups.
Keeping top talent becomes ever more important as organisations mature. Because RSUs offer stability, tie directly to company performance and growth, and do not require employees to buy shares, they are frequently preferred over stock options. Consequently, RSUs can help attract leading candidates, build loyalty and encourage staff to support the company’s long-term success.
Unlike stock options, which require employees to pay a 'strike price' to acquire shares, RSUs are granted outright on vesting, removing any upfront financial burden for employees.
RSUs are often seen as having less upside potential than stock options, since options let employees profit from share price rises over time, while RSU value is more closely linked to the company’s current market value. Issuing many RSUs can also dilute value. These factors should be weighed before adopting an equity plan.
Although RSUs may form a useful element of your company’s compensation mix, they are not invariably the right choice. Leaders should carefully compare the advantages and disadvantages of RSUs and stock options in light of their particular circumstances when shaping an equity strategy. If you have questions, arrange a call with a Remote incentive planning expert now.